Are you new to real estate investment and unsure how to find profitable properties to buy at a bargain?
With 750+ homes bought and sold during our 10+ years in the Pittsburgh real estate market, at HomeBuyers of Pittsburgh we are experienced real estate investors who understand how difficult it can be for novice investors to identify property deals, especially with house prices remaining high in 2023.
That's why we decided to write this post, which offers proven strategies that aspiring real estate investors can employ to uncover the best Pittsburgh home deals that fit their investing objectives.
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By the way, first-time homebuyers hoping to save thousands of dollars on their first property and home sellers searching for a great deal on their next residence may also benefit from the advice we share.
How Do Real Estate Investors Find Deals?
Here are four easy tips you can use to find real estate deals, whether you're in the market for a family home or an investment property for your company.
Leverage Online Real Estate Resources
The internet provides a wealth of information in today's digital world, which is why 96% of homebuyers in 2022 started their home search by browsing online listings for properties in their area.
Real estate websites like Zillow, Redfin, and Realtor.com can provide you with comprehensive listings of Pittsburgh homes for sale, and you can filter your search based on location, price range, property type, amenities, and other criteria, making it easier to find potential real estate deals on your laptop or smartphone.
A good filter to use is days on market. If you spot a house you want that hasn't sold in a while, it probably isn't getting much interest, and you could be able to get a fantastic price on it.
Most of the time, owners of such residences are far more inclined to sell for less since they're exhausted of holding onto the house.
Some may also be paying two mortgages because they've already purchased their new home and will consider practically any offer.
Getting involved in online communities like BiggerPockets, which has over 2 million real estate investors, and following popular real estate groups on social networking sites like Facebook, Twitter, and LinkedIn can also help you stay current on Pittsburgh's latest home market trends and the best deals available.
Seek the Guidance of a Real Estate Agent
When a home goes on the market, real estate agents are frequently the first to know about it.
This makes an experienced real estate professional an invaluable resource to any property investor looking to move quickly on Pittsburgh homes before they attract many potential buyers who could end up in a bidding war that drives the properties' prices up.
Additionally, they have access to the Multiple Listing Service (MLS), a detailed database of the majority of properties up for sale in Pittsburgh neighborhoods.
Yes, the MLS is used by hundreds of real estate professionals to link home buyers and sellers, which can result in fierce competition for homes available, but when it's configured well, a Multiple Listing Service can be a priceless tool for discovering potential Pittsburgh real estate deals.
Your real estate agent, for instance, can set up automatic email alerts for:
- Properties with overall days-on-market higher than the Pittsburgh market average
- Real estate that has been removed from the MLS and later re-listed
- Homes different real estate agents have repeatedly re-advertised
- Properties that are back on market after a sale fell through
- Expired listings where a home never got a buyer
By doing this, you'll be the first to know about these properties that have a high chance of selling at a bargain.
A seasoned realtor has also handled many property transactions, experience they can use to negotiate on your behalf, helping you secure the best possible sale terms and price for your investment property or new home.
Go For FSBOs
For Sale By Owner (FSBO) homes, as the name suggests, are properties owners sell without involving a realtor.
According to the National Association of REALTORS, FSBOs usually sell for roughly 26% less than properties sold by realtors.
The average cost of a house sold in 2022 with a real estate agent was $345,000, compared to $225,000 for FSBOs. This means you could potentially save $100,000+ if you pursue FSBOs.
Dealing directly with the homeowner can also enable you to avoid paying a realtor's commission — which often costs anywhere from 5% to 6% of the home's selling price.
As an example, if you spend $400,000 on a property, you might save an astounding $20,000 to $24,000.
FSBOs are not listed on Multiple Listing Services and often can't be found on big listing websites. Driving through Pittsburgh neighborhoods you'd like to invest in while keeping an eye out for "For Sale By Owner" signs is one approach to find such houses.
The real estate section of local Pittsburgh newspapers is also a fantastic source of leads for FSBO homes.
Look For Motivated Home Sellers
These are often homeowners who, due to a job transfer, divorce, financial problems, etc., are prepared to sell their home quickly for less than the market value.
A homeowner in danger of losing their home to foreclosure is an excellent example of an individual who's motivated to sell.
If you get in touch with them before the foreclosure process starts, you might be able to work out a win-win agreement where you buy their property at a discount, and they receive the quick cash they need to prevent foreclosure and overcome their financial difficulties.
A bank handling a foreclosure property can also be a motivated seller.
Since they're in the lending money, not real estate business, banks always want to sell foreclosed homes as soon as practical. To do so, they routinely sell these homes for substantially cheaper than their market worth to recoup their initial investment.
To entice you to acquire a property, a bank handling a foreclosure may also offer you a lower mortgage interest rate, possibly saving you hundreds of dollars in monthly mortgage payments.
Overall, buying foreclosure properties and reselling them for higher prices can be a very profitable strategy for real estate investors.
You can ensure you're always aware of homes just about to be listed with owners eager to sell by building a strong network of real estate professionals in Pittsburgh — including realtors, mortgage brokers, other property investors, real estate attorneys and hard-money lenders.
For example, lawyers are ideal networking partners because they often represent people who might be forced to sell their house fast for an array of reasons, including bankruptcy, pre-foreclosure, evictions, probate, and divorce.
Finally, it takes time to identify decent real estate deals. You, therefore, must exercise patience because it is doubtful that you'll find a bargain on a house overnight.
When you do discover a real estate opportunity, be ready to move immediately. This means being prepared financially and putting in an offer promptly, as Pittsburgh property deals move fast.
HomeBuyers of Pittsburgh: The #1 Professional Home Buyer
Do you want a reliable source of information about the Pittsburgh real estate market and how to find deals in the city? HomeBuyers of Pittsburgh can help! We are a team of experienced property investors who can provide you with the insights and guidance you need to succeed in the Pittsburgh property market..
We also have a good selection of properties with above-average returns available for purchase at competitive prices you can look at.
Want to sell your home quickly and stress-free? HomeBuyers of Pittsburgh can buy it for cash at a fair market price — as we have from hundreds of homeowners. No need to deal with realtors, showings, or repairs, and we can close in as little as 21 days on your terms.
Contact us today at 412-444-8914 or info [@] urbanpgh.com to learn more about how we can help you achieve your real estate goals!